What is the actual expense method vs. the standard mileage rate?

The actual expense method lets you deduct your real costs (lease payments, gas, insurance, maintenance, registration) proportional to business use. The standard mileage rate lets you deduct a flat per-mile amount (67 cents for 2024, adjusted annually). For leased vehicles, the actual expense method is the only option if the lease is in the business name. For personal leases used for business, you can choose either method in the first year.